Arcapita Bank B.S.C.(c), a leading international investment firm headquartered in Bahrain, announced today that it has completed the doubling of its issued equity capital base from approximately $400 million to more than $800 million. The $400 million equity capital increase comprised a $200 million rights issue to existing shareholders and a $200 million new share issue to strategic investors.
Commenting on the capital increase, Atif A. Abdulmalik, Arcapita’s Chief Executive Officer, said “We are very pleased that the capital increase we announced in May has now been successfully completed, with a 150% oversubscription for the new share issue. After the rapid growth of the business to date, the doubling of our equity capital base has strengthened our balance sheet considerably. This will allow further diversification of the products and services that we offer to our investors, as well as an expansion of our global footprint, including opening a new office in either Singapore or Hong Kong, to support continued business development opportunities in Asia.”
Arcapita currently sources its investments from its three offices in North America, Europe, and the Middle East and last year, expanded its international reach into Asia by making its first investment in Japan. Abdulaziz Aljomaih, Vice Chairman of Arcapita added, “Arcapita’s net income and balance sheet continues to grow significantly and we foresee considerable further growth opportunities. In line with the Bank’s conservative balance sheet management philosophy, the equity increase will support this growth, whilst allowing the Bank to maintain prudent financial ratios.”
The completion of the capital increase, which is subject to legal and regulatory formalities, follows the recent announcement that Arcapita and its affiliates had signed definitive agreements to complete Arcapita’s largest transaction to date, the €620 million acquisition of Paroc Holding Sverige AB, a leading European manufacturer of high grade insulation products. Over the last eight years, Arcapita’s net income has grown at a compounded annual growth rate of 37 per cent and its balance sheet has grown to approximately $1.9 billion as at 31 December 2005. Arcapita has completed 53 transactions with a total transaction value of approximately $12 billion during this period.
Added to Paroc, in recent months the Bank has announced several of its largest transactions to date, including Roxar AS, the European technology solutions provider for the oil and gas industry acquired for approximately $200 million; the Tensar Corporation, the US provider of technology driven construction site solutions acquired for $405 million; and Bahrain Bay, the $1.5 billion mixed use real estate development off the north east coast of Manama in Bahrain.
